Cognizant Reports Third Quarter 2019 Results
TEANECK, N.J., Oct. 30, 2019 /PRNewswire/ -- Cognizant Technology Solutions Corporation (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its third quarter 2019 financial results.
Highlights - Third Quarter 2019
-- Quarterly revenue rose to $4.25 billion, up 4.2% (5.1% in constant
currency(1)) from the year-ago quarter.
-- GAAP operating margin was 15.7% compared to 18.3% in the year-ago
quarter.
-- Adjusted Operating Margin(1) was 17.3% compared to 18.5% in the year-ago
quarter.
-- Net income was $497 million compared to $477 million in the year-ago
quarter.
-- Quarterly GAAP diluted EPS was $0.90, compared to $0.82 in the year-ago
quarter.
-- Quarterly Adjusted Diluted EPS(1) was $1.08, compared to $1.05 in the
year-ago quarter.
"Over the past few months, we've sharpened Cognizant's strategic posture and begun executing plans aimed at improving our competitive positioning," said Brian Humphries, Chief Executive Officer. "Today we are announcing a simplification of our operating model and a cost reduction program, which will allow us to fund investments in growth. Looking ahead, we see a clear path to unlock the organization's full growth potential, win in our key digital battlegrounds, and return Cognizant to its historical position of being the bellwether of the IT services industry."
(1)
Constant currency revenue growth,
Adjusted Operating Margin and Adjusted Diluted
Earnings Per Share ("Adjusted Diluted EPS") are not
measurements of financial performance prepared in
accordance with GAAP. See "About Non-GAAP Financial
Measures" for more information and reconciliations to
the most directly comparable GAAP financial measures
at the end of this release.
Third Quarter 2019 Performance by Business Segment
Financial Services (35.1% of revenues) revenue grew 1.9% year-over-year or 3.0% in constant currency. Segment revenue growth was driven by improvement in insurance, which benefited from the ramp-up of project-based work. Banking performance was consistent with the second quarter, reflecting the previously announced partnership with three Finnish financial institutions to transform and operate a shared core banking platform, partially offset by continued softness with a few of our largest banking clients.
Healthcare (27.7% of revenues) revenue decreased 1.2% year-over-year or 0.9% in constant currency. Segment revenue trends were consistent with the second quarter as results were negatively impacted by industry consolidation, movement of work to a captive at a large North American client, a contract dispute with a customer, and the completed ramp down of a project on which we were a subcontractor to a third party. Life Sciences again delivered double-digit growth, driven by continued demand within Digital Operations, continued momentum within our industry-specific platform solutions and the contribution of Zenith Technologies, which closed at the end of July.
Products and Resources (22.7% of revenues) revenue grew 11.9% year-over-year or 13.4% in constant currency, driven by broad-based growth across industries, including retail and consumer goods, travel and hospitality, and manufacturing, logistics, energy and utilities. Results reflect continued demand for services within Digital Business, including digital engineering, cloud and IoT solutions.
Communications, Media and Technology (14.5% of revenues) revenue grew 9.4% year-over-year or 10.6% in constant currency, led by growth in Technology. Communications and Media performance results again reflected the reduction of spending with a few large clients, while Technology growth was driven by revenue from recent acquisitions and demand for our digital engineering services.
Fourth Quarter & Full Year 2019 Outlook
The Company is providing the following guidance:
-- Fourth quarter 2019 year-over-year revenue growth in the range of
2.1-3.1% in constant currency.(2)
-- Full year 2019 year-over-year revenue growth in the range of 4.6-4.9% in
constant currency.(2)
-- Full year 2019 Adjusted Operating Margin(3) expected to be in the range
of 16.5-17.0%.
-- Full year 2019 Adjusted Diluted EPS(3) expected to be in the range of
$3.95-$3.98.
(2) Based on current foreign exchange rates, we
expect fourth quarter and full year 2019
revenue growth to be negatively impacted by 40
basis points and 110 basis points,
respectively, translating to growth of
1.7-2.7% ($4.20-$4.24 billion) and 3.5-3.8%
($16.70-$16.74 billion), respectively.
3 A full reconciliation of Adjusted Operating
Margin and Adjusted Diluted EPS guidance to
the corresponding GAAP measures on a forward-
looking basis cannot be provided without
unreasonable efforts, as we are unable to
provide reconciling information with respect
to unusual items, net non-operating foreign
currency exchange gains or losses, and the tax
effects of these adjustments.
2020 Fit for Growth Plan
Over the next two years, the Company's sharpened strategy will focus on optimizing its core portfolio while investing to extend its capabilities in four areas that are critical to clients who need to accelerate their digital journeys: Data, Digital Engineering, Cloud, and IoT. To compete and win in these digital markets will require significant investment not only in these technologies but in a variety of enablers that include sales and marketing, talent reskilling, acquisitions, and partnerships. Therefore, the Company is streamlining its cost structure to partially fund these investments and execute its growth agenda.
The optimization of our cost structure is expected to be substantially complete by the end of 2020 and result in total charges of approximately $150-200 million primarily related to severance and facility exit costs. This is expected to result in an annualized gross savings run rate of approximately $500-550 million in year 2021.
"We remain on track to achieve our revised full year revenue guidance. However, to continue to invest in our growth initiatives, we must move quickly to improve our cost structure," said Karen McLoughlin, Chief Financial Officer. "Our announcement of this multi-year realignment plan underscores our commitment to accelerate the execution of our strategy to make us fit for growth. Throughout this evolution, we intend to continue to capitalize on our strong balance sheet and attractive cash flow profile to return cash to shareholders."
Capital Deployment Plan - Dividend
The Company has declared a quarterly cash dividend of $0.20 per share on Cognizant Class A common stock for shareholders of record at the close of business on November 19, 2019. This dividend will be payable on November 29, 2019.
Conference Call
Cognizant will host a conference call on October 30, 2019, at 5:00 p.m. (Eastern) to discuss the Company's third quarter 2019 results. To listen to the conference call, please dial (877) 810-9510 (domestically) or (201) 493-6778 (internationally) and provide the following conference passcode: "Cognizant Call."
The conference call will also be available live on the Investor Relations section of the Cognizant website at http://investors.cognizant.com. Please go to the website at least 15 minutes prior to the call to register and to download and install any necessary audio software. An earnings supplement will also be available on the Cognizant website at the time of the conference call.
For those who cannot access the live broadcast, a replay will be available. To listen to the replay, please dial (877) 660-6853 (domestically) or (201) 612-7415 (internationally) and enter 13695115 from two hours after the end of the call until 11:59 p.m. (Eastern) on November 13, 2019. The replay will also be available at Cognizant's website www.cognizant.com for 60 days following the call.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world's leading professional services companies, transforming clients' business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 193 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
Forward-Looking Statements
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding opportunities in the marketplace, our cost structure, investment in and growth of our business, our realignment plans, the timing, cost and impact of the 2020 Fit for Growth Plan, our shift to digital solutions and services, our anticipated financial performance, our capital deployment plan and clarification, if any, by the Indian government as to the application of the Supreme Court's ruling related to the India Defined Contribution Obligation. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, changes in the regulatory environment, including with respect to immigration and taxes, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this press release includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Income From Operations, Adjusted Operating Margin, Adjusted Diluted EPS, free cash flow and constant currency revenue growth. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of our non-GAAP financial measures to the corresponding GAAP measures should be carefully evaluated.
Our non-GAAP financial measures, Adjusted Operating Margin and Adjusted Income From Operations, exclude unusual items and Adjusted Diluted EPS additionally excludes net non-operating foreign currency exchange gains or losses and the tax impact of all the applicable adjustments. The income tax impact of each item is calculated by applying the statutory rate and local tax regulations in the jurisdiction in which the item was incurred. Free cash flow is defined as cash flows from operating activities net of purchases of property and equipment. Constant currency revenue growth is defined as revenues for a given period restated at the comparative period's foreign currency exchange rates measured against the comparative period's reported revenues.
Management believes providing investors with an operating view consistent with how we manage the Company provides enhanced transparency into our operating results. For our internal management reporting and budgeting purposes, we use various GAAP and non-GAAP financial measures for financial and operational decision-making, to evaluate period-to-period comparisons, to determine portions of the compensation for our executive officers and for making comparisons of our operating results to those of our competitors. Therefore, it is our belief that the use of non-GAAP financial measures excluding certain costs provides a meaningful supplemental measure for investors to evaluate our financial performance. Accordingly, we believe that the presentation of our non-GAAP measures, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.
A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and may exclude costs that are recurring such as our net non-operating foreign currency exchange gains or losses. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from our non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.
- tables to follow -
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
---
Revenues $
4,248 $
4,078 $
12,499 $
11,996
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization expense 2,681 2,480 7,885 7,298
shown separately below)
Selling, general and administrative expenses 771 734 2,412 2,250
Depreciation and amortization expense 127 119 375 340
Income from operations 669 745 1,827 2,108
Other income (expense), net:
Interest income 43 47 136 128
Interest expense (7) (6) (20) (19)
Foreign currency exchange gains (losses), net (47) (122) (29) (233)
Other, net - (2) 3 (2)
Total other income (expense), net (11) (83) 90 (126)
Income before provision for income taxes 658 662 1,917 1,982
Provision for income taxes (160) (185) (469) (530)
Income from equity method investments (1) (1) 1
Net income $
497 $
477 $
1,447 $
1,453
Basic earnings per share $
0.90 $
0.82 $
2.57 $
2.49
Diluted earnings per share $
0.90 $
0.82 $
2.57 $
2.48
Weighted average number of common shares outstanding - Basic 551 579 563 584
Dilutive effect of shares issuable under stock-based compensation plans - 1 1
Weighted average number of common shares outstanding - Diluted 551 580 563 585
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(in millions, except par values)
September 30, December 31,
2019 2018
---
Assets
Current assets:
Cash and cash equivalents $
2,343 $
1,161
Short-term investments 734 3,350
Trade accounts receivable, net 3,438 3,257
Other current assets 876 909
Total current assets 7,391 8,677
Property and equipment, net 1,318 1,394
Operating lease assets, net 905
Goodwill 3,694 3,481
Intangible assets, net 1,192 1,150
Deferred income tax assets, net 492 442
Long-term investments 79 80
Other noncurrent assets 773 689
Total assets $
15,844 $
15,913
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $
246 $
215
Deferred revenue 265 286
Short-term debt 38 9
Operating lease liabilities 195
Accrued expenses and other current liabilities 2,175 2,267
Total current liabilities 2,919 2,777
Deferred revenue, noncurrent 71 62
Operating lease liabilities, noncurrent 734
Deferred income tax liabilities, net 57 183
Long-term debt 709 736
Long-term income taxes payable 471 478
Other noncurrent liabilities 181 253
Total liabilities 5,142 4,489
Stockholders' equity:
Preferred stock, $0.10 par value, 15.0 shares authorized, none issued -
Class A common stock, $0.01 par value, 1,000 shares authorized, 550 and 577 shares issued 6 6
and outstanding as of September 30, 2019 and December 31, 2018, respectively
Additional paid-in capital 35 47
Retained earnings 10,820 11,485
Accumulated other comprehensive income (loss) (159) (114)
Total stockholders' equity 10,702 11,424
Total liabilities and stockholders' equity $
15,844 $
15,913
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(dollars in millions, except per share amounts)
Three Months Ended Nine Months Ended
Guidance
September 30, September 30,
2019 2018 2019 2018 Full Year 2019
GAAP income from operations $
669 $
745 $
1,827 $
2,108
Realignment charges(a) 65 11 116 12
Incremental accrual related to the India Defined - 117
Contribution Obligation(b)
Initial funding of Cognizant U.S. Foundation (c) - 100
2020 Fit for Growth Plan restructuring charges(d) -
Adjusted Income From Operations $
734 $
756 $
2,060 $
2,220
GAAP operating margin 15.7 18.3 14.6 17.6
% % % %
Realignment charges 1.6 0.2 1.0 0.1 0.9% - 1.0%
Incremental accrual related to the India Defined - 0.9
(b)
Contribution Obligation
Initial funding of Cognizant U.S. Foundation - 0.8
2020 Fit for Growth Plan restructuring charges - 0.4% - 0.7%
Adjusted Operating Margin 17.3 18.5 16.5 18.5
% % % %
approximately
16.5% - 17.0%
GAAP diluted earnings per share $
0.90 $
0.82 $
2.57 $
2.48
Effect of above adjustments, pre-tax 0.12 0.02 0.41 0.20
(a), (b), (d)
Non-operating foreign currency exchange (gains) 0.09 0.21 0.06 0.39
(e)
losses, pre-tax(e)
Tax effect of above adjustments (f) (0.03) 0.01 (0.11) (0.02)
(a), (b), (d), (e)
Effect of adjustment to the one-time income tax - (0.01) (0.01)
expense related to the Tax Reform Act (g)
Adjusted Diluted Earnings Per Share $
1.08 $
1.05 $
2.93 $
3.04
$3.95 - $3.98
Notes:
(a) During the three months ended
September 30, 2019, we incurred $65
million in realignment charges that
include $33 million in employee
separation costs, $18 million in
employee retention costs and $14
million in third party realignment
costs. During the nine months ended
September 30, 2019, we incurred $116
million of realignment charges that
include $60 million of employee
separation costs, $22 million of
costs associated with our CEO
transition and the departure of our
president, $18 million of employee
retention costs and $16 million in
third party realignment costs. The
total costs related to the
realignment are reported in "Selling,
general and administrative expenses"
in our unaudited consolidated
statements of operations. Our
guidance anticipates pre-tax
realignment charges in the range of
$0.27 to $0.30 per diluted share for
the full year 2019. The tax effect of
these realignment charges is expected
to be in the range of $0.07 to $0.08
per diluted share for the full year
2019.
(b) In the first quarter of 2019, a ruling
of the Supreme Court of India
interpreting certain statutory
defined contribution obligations of
employees and employers (the "India
Defined Contribution Obligation")
altered historical understandings of
such obligations, extending them to
cover additional portions of the
employee's income. As a result, the
ongoing contributions of our affected
employees and the Company are
required to be increased. In the
first quarter of 2019, we accrued
$117 million with respect to prior
periods, assuming retroactive
application of the Supreme Court's
ruling. There is significant
uncertainty as to how the liability
should be calculated as it is
impacted by multiple variables,
including the period of assessment,
the application with respect to
certain current and former employees
and whether interest and penalties
may be assessed. Since the ruling, a
variety of trade associations and
industry groups have advocated to the
Indian government, highlighting the
harm to the information technology
sector, other industries and job
growth in India that would result
from a retroactive application of the
ruling. We anticipate the Indian
government will review the matter and
believe there is a substantial
question as to whether the Indian
government will apply the Supreme
Court's ruling on a retroactive
basis. As such, the ultimate amount
of our obligation may be materially
different from the amount accrued and
therefore, the amount and timing of
an adjustment to this accrual, if
any, cannot be provided on a forward-
looking basis without unreasonable
efforts. The incremental accrual
related to the India Defined
Contribution Obligation is reported
in "Selling, general and
administrative expenses" in our
unaudited consolidated statement of
operations.
(c) In the second quarter of 2018, we
provided $100 million of initial
funding to Cognizant U.S. Foundation.
This cost is reported in "Selling,
general and administrative expenses"
in our unaudited consolidated
statement of operations.
(d) Over the next two years, we intend to
implement our 2020 Fit for Growth
Plan, which will involve significant
investments in technology, sales and
marketing, talent reskilling,
acquisitions, and partnerships to
further sharpen our strategic
positioning in key digital areas. The
2020 Fit for Growth Plan will also
involve certain measures commencing
in the fourth quarter of 2019 to
optimize our cost structure in order
to partially fund these investments
and advance our growth agenda. In the
fourth quarter of 2019 and in 2020,
the optimization measures that are
part of the 2020 Fit for Growth Plan
are expected to result in total
restructuring charges in the range of
$150 million to $200 million,
primarily related to severance and
facility exit costs. Our guidance
anticipates pre-tax Fit for Growth
restructuring charges in the range of
$0.13 to $0.20 per diluted share for
the full year 2019. The tax effect of
these charges is expected to be in
the range of $0.04 to $0.05 per
diluted share for the full year 2019.
(e) Non-operating foreign currency
exchange gains and losses, inclusive
of gains and losses on related
foreign exchange forward contracts
not designated as hedging instruments
for accounting purposes, are reported
in "Foreign currency exchange gains
(losses), net" in our unaudited
consolidated statements of
operations. Non-operating foreign
currency exchange gains and losses
are subject to high variability and
low visibility and therefore cannot
be provided on a forward-looking
basis without unreasonable efforts.
(f) Presented below are the tax impacts of
each of our non-GAAP adjustments to
pre-tax income:
Three Months Ended Nine Months Ended
September 30 September 30
2019 2018 2019 2018
(in millions) (in millions)
Non-GAAP income tax benefit (expense) related to:
Realignment charges $
17 $
3 $
30 $
3
Incremental accrual related to the India Defined Contribution Obligation 31
Cognizant U.S. Foundation funding 28
Foreign currency exchange gains and losses (2) (6) (1) (15)
The
effective
tax rate
related to
each of our
non-GAAP
adjustments
varies
depending
on the
jurisdictions
in which
such income
and
expenses
are
generated
and the
statutory
rates
applicable
in those
jurisdictions.
(g) In the third
quarter of
2018, we
finalized
our
calculation
of the one-
time net
income tax
expense
related to
the
enactment
of the Tax
Cuts and
Jobs Act
("Tax
Reform
Act") and
recognized
a $5
million
income tax
benefit,
which
reduced our
provision
for income
taxes.
The above tables serve to reconcile the Non-
GAAP financial measures to the most
directly comparable GAAP measures. Please
refer to the "About Non-GAAP Financial
Measures" section of our press release for
further information on the use of these
Non-GAAP measures.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
Schedule of Supplemental Information
(Unaudited)
(dollars in millions)
Three Months Ended September 30, 2019
Year over Year
$ % of total % Change Constant
Currency
% Change (a)
---
Revenues by Segment:
Financial Services $
1,492 35.1
% 1.9
% 3.0
%
Healthcare 1,175 27.7
% %
% (1.2) (0.9)
Products and Resources 966 22.7
% %
% 11.9 13.4
Communications, Media and Technology 615 14.5
%
% 9.4
% 10.6
Total Revenues $
4,248 4.2
% 5.1
%
Revenues by Geography:
North America $
3,223 75.9
% 3.7
% 3.7
%
United Kingdom 325 7.7
% % 4.5
%
Continental Europe 430 10.1
%
% 8.0
% 12.3
Europe - Total 755 17.8
% 4.4
% 8.8
%
Rest of World 270 6.4
%
% 8.9
% 11.1
Total Revenues $
4,248 4.2
% 5.1
%
Nine Months Ended September 30, 2019
Year over Year
$ % of total % Change Constant
Currency
% Change (a)
---
Revenues by Segment:
Financial Services $
4,401 35.2
% 0.2
% 1.6
%
Healthcare 3,474 27.8
% 0.2
% 0.7
%
Products and Resources 2,807 22.5
% %
% 11.2 13.2
Communications, Media and Technology 1,817 14.5
% %
% 12.7 14.6
Total Revenues $
12,499 4.2
% 5.5
%
Revenues by Geography:
North America $
9,485 75.9
% 3.7
% 3.7
%
United Kingdom 976 7.8
% 3.4
% 8.6
%
Continental Europe 1,262 10.1
%
% 9.5
% 15.4
Europe - Total 2,238 17.9
%
% 6.7
% 12.4
Rest of World 776 6.2
% 3.5
% 8.2
%
Total Revenues $
12,499 4.2
% 5.5
%
Employee Metrics: September 30, 2019 September 30, 2018
Number of employees 289,900 274,200
Notes:
---
(a) Constant currency revenue growth is
not a measurement of financial
performance prepared in accordance
with GAAP. See "About Non-GAAP
Financial Measures" for more
information.
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
---
Cash flows from operating activities:
Net income $
497 $
477 $
1,447 $
1,453
Adjustments for non-cash income and expenses 221 288 401 813
Changes in assets and liabilities (1) 97 (287) (376)
Net cash provided by operating activities 717 862 1,561 1,890
Cash flows from investing activities:
Purchases of property and equipment (97) (94) (299) (281)
Net sales (purchases) of investments 583 (171) 2,640 (317)
Payments for business combinations, net of cash acquired (146) (1) (378) (479)
Net cash provided by (used in) investing activities 340 (266) 1,963 (1,077)
Cash flows from financing activities:
Repurchases of common stock (259) (45) (2,084) (994)
Net change in borrowings and finance lease and earnout obligations (7) (25) (16) (164)
Dividends paid (111) (116) (343) (352)
Issuance of common stock under stock-based compensation plans 37 40 127 142
Net cash (used in) financing activities (340) (146) (2,316) (1,368)
Effect of exchange rate changes on cash and cash equivalents (34) (12) (26) (31)
Increase (decrease) in cash and cash equivalents 683 438 1,182 (586)
Cash and cash equivalents, beginning of period 1,660 901 1,161 1,925
Cash and cash equivalents, end of period $
2,343 $
1,339 $
2,343 $
1,339
SUPPLEMENTAL CASH FLOW INFORMATION
(in millions)
Three Months Ended
Stock Repurchases under Board of Directors' authorized stock repurchase program: September 30, 2019 September 30, 2018
Number of shares repurchased 3.6 1.4
Remaining authorized balance $
519
Reconciliation of Free Cash Flow Non-GAAP Financial Measure
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
---
Net cash provided by operating activities $
717 $
862 $
1,561 $
1,890
Purchases of property and equipment (97) (94) (299) (281)
Free cash flow $
620 $
768 $
1,262 $
1,609
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SOURCE Cognizant
